What is the expected rate of return of the fifteen year

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(Bond valuation)

Point 1: You own a 15-year, $1,000 par value bond paying 7 percent interest annually. The market price of the bond is $850, and your required rate of return is 10 percent.

Question a. What is the expected rate of return of the 15-year, $1,000 par value bond paying 7 percent interest annually if its market price is $850?

Reference no: EM132488239

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